NEW LARGO PROJECT FEL3 FEASIBILITY STUDY STAGE 2: RE-ALIGNMENT OF ROAD R545. for ANGLO AMERICAN THERMAL COAL

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NEW LARGO PROJECT FEL3 FEASIBILITY STUDY of STAGE 2: RE-ALIGNMENT OF ROAD R545 for ANGLO AMERICAN THERMAL COAL SEMANE PROJECT NUMBER: 102NLG019 REPORT NUMBER: 000-0130-RPT0012 DATE: March 2012 REVISION NUMBER: B PHASE: 2 & 3 1 st Floor, 88 Marshall Street Johannesburg, 2001 PO Box 61950 Marshalltown, 2107 Republic of South Africa Telephone Nº: (011) 891-1600 Facsimile Nº: (011) 833-1039 E-mail: corporate@semane.co.za

REPORT CONTROL SHEET AUTHOR/S NAME DESIGNATION SIGNATURE DATE R Pyke Senior Engineer APPROVAL NAME DESIGNATION SIGNATURE DATE R Couto Director B van Zyl P Rajlal DISTRIBUTION NAME DOCUMENT TYPE E-MAIL ADDRESS CHANGE HISTORY DATE REVISION NO. DESCRIPTION 21/02/2012 A Original submission 08/03/2012 B Alternative alignments, traffic circle added Final R545 design report compressed.doc Page 2 of 34

TABLE OF CONTENTS EXECUTIVE SUMMARY... 5 1. BACKGROUND... 6 2. RELEVANT STUDIES AND DISCUSSIONS... 6 3. APPLICABLE STANDARDS... 7 4. HORIZONTAL ALIGNMENT... 7 5. VERTICAL ALIGNMENT... 12 6. ENVIRONMENTAL ISSUES... 13 7. TRAFFIC ISSUES... 13 8. INTERSECTIONS... 14 8.1 Major Intersections... 14 8.2 Minor Intersections (Farm accesses)... 15 9. PROPERTY ACQUISITION... 18 10. FENCING... 18 11. ROAD TRAFFIC SIGNS AND ROAD MARKING... 19 12. DRAINAGE... 19 13. GEOTECHNICAL... 19 14. PAVEMENT DESIGN... 21 15. EARTHWORKS BALANCE... 21 16. EXISTING AND PROPOSED SERVICES... 21 17. CONSTRUCTABILITY... 23 18. EXISTING R545 (BETWEEN WILGE TOWNSHIP AND N12 FREEWAY)... 23 19. CONCLUSIONS... 32 20. RECOMMENDATIONS... 33 Final R545 design report compressed.doc Page 3 of 34

LIST OF TABLES Table 1: New Horizontal Alignment for R545... 9 Table 2: New Vertical Alignment for R545... 12 Table 3: Existing Farm Roads Crossing the Proposed R545... 16 Table 4: Future Farm Access Intersections... 17 Table 5: Major Storm-water Crossings of the R545... 19 Table 6: Overhead Power Transmission Line Crossings... 21 Table 7: Condition of existing Road R545 (December 2011)... 23 LIST OF FIGURES Figure 1: R545 Horizontal Alignment & Alternatives... 8 Figure 2: Layout of Modern Roundabout... 15 APPENDIX A Layout Drawing Final R545 design report compressed.doc Page 4 of 34

EXECUTIVE SUMMARY Anglo American Thermal Coal (Pty) Ltd plans to develop the New Largo Coal Mine near the Kusile Power Station. The existing Provincial Road 545 passes through the proposed mining area and this section of the R545 will have to be re-aligned to the east to accommodate the planned mining operations. Relevant Environmental, Traffic and Geotechnical investigations were undertaken during the project and the findings of these studies were taken into consideration in the design of the planned re-alignment of the R545. Several routes for the R545 were investigated. The following constraints impact on the planned horizontal alignment: The road should be re-aligned on property controlled by Anglo American (wherever possible); The road should clear the 500m blasting zone for the new mine; The road should, as far as possible, avoid environmentally sensitive areas; The new road alignment should minimize the impact on existing services (e.g. overhead power lines). At it s northern end, the R545 should intersect the existing road at a point opposite the new access road for the Kusile Power Station, which is currently under construction. The road is designed for a design speed of 100 km/hr and the requirements for the planned horizontal and vertical alignments have been achieved. Standard Details of the Mpumulanga Department of Public Works, Roads and Transport were used for the design. Road signs and road marking are in accordance with the South African Road Traffic Signs Manual (SARTSM). Storm water drainage was designed to accommodate a storm with a 20 year recurrence interval. The condition of the southern section of the existing R545 was surveyed and assessed and rehabilitation measures were proposed. Final R545 design report compressed.doc Page 5 of 34

1. BACKGROUND Anglo American Thermal Coal (Pty) Ltd plans to develop the New Largo Coal Mine near the Kusile Power Station, which is currently under construction in Mpumulanga. The existing road R545 (also referred to as D686) crosses the proposed mining area. The mining operation will undermine a section of the existing road, which will be closed to traffic. The existing Road R545 provides a north-south link between the N4 in the north and the N12 in the south and provides direct access to these two freeways via access interchanges. Due to the significance of the R545 in the local road network, it will be necessary to retain the R545 by constructing a new section of road to bypass the proposed mining area. The re-alignment of Road R545 forms part of the Stage 2 development of the New Largo Mine. It is anticipated that the construction of this bypass will be completed by mid year 2017. 2. RELEVANT STUDIES AND DISCUSSIONS Various alternative routes for the re-alignment of the R545 were investigated by Jeffares and Green Consulting Engineers in consultation with relevant stakeholders. A report on the alternative routes was prepared in May 2009. An investigation was undertaken by Synergistics Environmental Services to identify the environmentally sensitive areas in the vicinity of the proposed route and to determine the environmental constraints that should be imposed on the proposed alignment of the R545. As part of this study an investigation into the impact of the proposed developments in the New Largo area on the traffic predicted to use the R545, was undertaken by WSP SA Civil and Structural Engineers (Pty) Ltd. The study was documented in the report entitled S0403/TRA/00: New Largo Colliery Traffic Impact Assessment Report (Version 0) prepared in August 2011. This report proposed the upgrading of several existing intersections to accommodate the predicted future traffic. Discussions were held with officials of the Mpumulanga Department of Public Works, Roads and Transport in order to obtain their input on the proposed new alignment of the R545. Final R545 design report compressed.doc Page 6 of 34

A Geotechnical investigation of the existing soil conditions along the route for the re-aligned section of the R545 was undertaken. Soil samples were collected and were tested at a materials laboratory. The findings of the investigation were documented in a report entitled Geotechnical Report for New Largo Colliery R545 Road Deviation numbered 000-0130- RPT0013 Based on the findings of these studies and discussions and taking into consideration the merits and constraints of the various alternative alignments, a route passing to the east of the mining area was finally accepted and approved in principle. 3. APPLICABLE STANDARDS The road was designed in accordance with the Standard Details of the Mpumulanga Department of Public Works, Roads and Transport. The design speed for the road is 100 km/hr and the standard Road Reserve width is 40 metre. 4. HORIZONTAL ALIGNMENT Several alternative horizontal alignments were considered before finalizing the route of the realigned section of Road R545. -This final alignment was determined subject to the following constraints: The road should be re-aligned on property controlled by Anglo American (wherever possible); The road should clear the 500m blasting zone for the new mine; The road should, as far as possible, avoid environmentally sensitive areas; The new road alignment should minimize the impact on existing services (e.g. overhead power lines). At it s northern end, the R545 should intersect the existing road at a point opposite the new access road for the Kusile Power Station, which is currently under construction. The selected alignment of the R545, as Approved in Principle by the Mpumulanga Department of Public Works, Roads and Transport, is shown in blue in the accompanying Figure 1. This Final R545 design report compressed.doc Page 7 of 34

Figure also shows the alternative horizontal alignments for R545 that were considered (marked in red and green as Option B and Option C). N Kusile Road Kusile Power Station Mining Area Alternative alignments Existing R545 Re-aligned R545 Mining Area Existing R545 Alternative alignments Figure 1: R545 Horizontal Alignment & Alternatives Final R545 design report compressed.doc Page 8 of 34

The final horizontal alignment for the R545 was based on Version 6 of the Mining Plan for the New Largo Mine. However this alignment is appropriate for either Mining Plan 6 or Mining Plan 7. For a 100 km/hr design speed, the minimum permissible radius for a horizontal curve is specified as 350 metre (with a desirable minimum horizontal curve radius of 600 metre). Horizontal curves should not be less than 300 metre in length. The details of the horizontal curves for the new alignment are summarized in the following Table 1: Table 1: New Horizontal Alignment for R545 Horizontal Curve No Radius (metres) Length of Curve (metres) 1 - - 2 650 605 3 1 200 587 4 1 200 344 5 900 1 412 6 1 400 2.387 7 600 560 8 800 1 001 As can be seen from this table, all the horizontal curves exceed the above-mentioned minimum requirements (i.e. horizontal radius exceeds 350 metre and curve length exceeds 300 metre). The following photographs show the hilly topography at the northern end of the re-alignment: Final R545 design report compressed.doc Page 9 of 34

Photo 1: View of hill at northern end of route in direction of road (facing east) Photo 2: Route 10.00km (left) to 7.00km (right) along ridge (facing north) Final R545 design report compressed.doc Page 10 of 34

Photo 3: Route 14.00km on van der Heever Farm (facing west with Wilge Power Station in the background) Photo 4: Southern tie-in of proposed R545 to existing R545 (facing west with Wilge Township in background) Final R545 design report compressed.doc Page 11 of 34

5. VERTICAL ALIGNMENT For a 100 km/hr design speed, the minimum K value for a crest vertical curve is specified as 62; the minimum for a sag vertical curve is 37. The desirable minimum length of a vertical curve specified as 180 metre. Details of the horizontal curves for the re-alignment are summarized in the following Table 2: Table 2: New Vertical Alignment for R545 Vertical Curve No Vertical Curve K-value of curve Length Sag (37 min) Crest (62 min) (metres) 1 200 37-2 950-74 3 400 70-4 300 85-5 525-89 6 375 89-7 300 77-8 1 110-152 9 380 58-10 1 000-123 11 350 99-12 460 217-13 300 269 14 300 180 - As can be seen from this table, all the vertical curves proposed comply with the abovementioned requirements. Final R545 design report compressed.doc Page 12 of 34

Generally gradients are less than 4% with four exceptions: Section 0.25km to 0.53km (6.3%); Section 1.48km to 1.73km (6.5%); Section 5.38km to 5.41km (4.9%); Section 7.58km to 8.03km (4.2%). Due to the relatively short lengths of steep gradient, it is proposed that climbing lanes should not be provided. 6. ENVIRONMENTAL ISSUES The route for road R545 crosses several environmentally sensitive areas and these areas were avoided wherever possible. These environmentally sensitive areas are shown on the accompanying Drawing No 0000-0130-CED-0401. At the northern end of the re-alignment, the R545 is aligned to bypass to the north of the occurrence of the environmentally-sensitive Frithia Flowers. The section of R545 between 12 500km and 12 900km has been shifted northwards out of Anglo American property onto Portion 26 of Roodepoortjie 326 JR, to avoid the environmentally sensitive stream on the adjacent property. 7. TRAFFIC ISSUES A Traffic Impact Study, which assesses the impact of mining and other industrial development in the area, was prepared by WSP SA Civil and Structural Engineers (Pty) Ltd. This study predicts the future traffic on the R545 and proposes the upgrading of intersections on the R545 to accommodate this traffic. In terms of this report, the following existing intersections should be upgraded and traffic signals installed to accommodate the predicted traffic flows: The southern ramp terminal at the N12/R545 interchange; The northern ramp terminal at the N12/R545 interchange. Final R545 design report compressed.doc Page 13 of 34

The study proposes that a traffic circle should be constructed at the northern end of the proposed re-alignment of the R545 at it s intersection with the new Kusile Road. 8. INTERSECTIONS 8.1 Major Intersections At the northern end the re-aligned R545 will tie to the existing road at a T-junction, where it intersects with the new Kusile Road. A large number of turning movements are anticipated at this intersection and a large number of these will be right turns across opposing traffic. From a traffic safety perspective, it is proposed that a Modern Roundabout type traffic circle should be constructed at this new intersection. This type of intersection is particularly effective in handling opposed right turning traffic safely. Traffic analysis undertaken in the Traffic Study prepared by WSP Engineers shows that a traffic circle will accommodate the predicted traffic volumes with minimal delay. International experience indicates that Modern Roundabouts can be expected to operate with a higher degree of traffic safely than a normal intersection. The roundabout should have an internal diameter of 80 metres and the width of the circulating roadway should be 10 metres wide. Depending on the proposed phasing of the mining operation, it may be necessary to initially construct all four approaches, although in the longer term the southern approach will become redundant and will be closed to traffic. The layout of the proposed Modern Roundabout is shown in the accompanying Error! Reference source not found.. Final R545 design report compressed.doc Page 14 of 34

Existing R545 New Kusile Road Re-aligned R545 Existing R545 (to be closed) Figure 2: Layout of Modern Roundabout At it s southern end, the re-aligned section of Road R545 will tie into the existing road (which is 7.4m wide), via an 800 metre radius horizontal curve. The existing western approach on the R545 (from Wilge Township) will be closed to traffic and a new T-junction will be constructed on the outside of the curve at 14.57km to accommodate traffic on R545 from the west. This junction will include an exclusive right turn lane and 80 metre long acceleration/deceleration tapers. 8.2 Minor Intersections (Farm accesses) From a road safety aspect, farm accesses on the proposed R545 should generally be spaced at minimum intervals of 500 to 600 metre, although closer spacing can be considered in specific instances. Farm accesses should, wherever possible, be located opposite each other to form a normal intersection on the R545. However, it is important that there should be adequate sight Final R545 design report compressed.doc Page 15 of 34

distance at all farm accesses. Intersections are generally not permitted on curves with a radius less than 1 500m. Existing farm access roads cross the proposed route for the R545 at the following locations: Table 3: Existing Farm Roads Crossing the Proposed R545 Distance Remarks 0.22km Close existing road and divert to new access at 0.28km 1.10km Close existing road 1.60km Construct new access at existing farm road crossing 2.34km Construct new access at existing farm road crossing 2.84km Close existing road 3.68km Construct new access at existing farm road crossing 5.21km Construct new access at existing farm road crossing 5.95km Construct new access at existing farm road crossing 7.08km Close existing road 7.22km Construct new access at existing farm road crossing 8.63km Close existing road 9.14km Construct new access at existing farm road crossing 10.09km Construct new access at existing farm road crossing 11.18 km New deviated farm access 11.74km Close existing road 13.31km New junction with deviated school road 13.75km Construct new access 14.58km New junction with existing R545 Not all these existing farm roads will require direct access to the R545 in the future and the total number of intersections can be reduced substantially. Many of these existing roads cross the proposed R545 at a location which is not suitable for a safe intersection, due to factors such as restricted sight distance, located on horizontal curve or located in cutting etc. Suitable farm access locations were determined and adjacent farm roads were consolidated to restrict the number of intersections. Meetings were held with a representative of the farmers to confirm that the proposed farm access intersections were acceptable for their needs. Final R545 design report compressed.doc Page 16 of 34

Farm access intersections that are designed in accordance with the Mpumulanga Standard Detail Drawing MTP 3/1 (Typical Farm Road Junctions) are to be provided at the following locations on the R545: Table 4: Future Farm Access Intersections Distance Farm Portion Owner 0.28km Portion 5 Eenzaamheid 534 JR Witbank Brickworks 1961 (Pty) Ltd? 1.60km RE Honingkrantz 536 JR Anglo 2.34km RE Honingkrantz 536 JR Anglo 3.68km RE Honingkrantz 536 JR Anglo 5.22km RE Honingkrantz 536 JR Anglo 5.95km RE Honingkrantz 536 JR Anglo 7.22km RE Honingkrantz 536 JR Anglo 9.14km Portion 23/1 Roodepoortje 326 JS Anglo 10.09km RE/1 Roodepoortje 326 JS JH Roos 11.18km Portion 24/1 Roodepoortje 326 JS JE Strick 13.75km Portion 29 Vlakfontein 569 JR JC vd Heever Access to the existing school road (major farm access road) is to be provided at 13.30km. This access should be in accordance with Mpumulanga Standard Detail Drawing MTP 3/3 (T-junction of numbered district gravel road with tarred single carriageway roads). The following photograph shows the existing school road: Final R545 design report compressed.doc Page 17 of 34

Photo 5: Existing school road on van der Heever Farm (facing north-east) 9. PROPERTY ACQUISITION The majority of the route for the proposed re-alignment of Road R545 crosses property that is either controlled by or owned by Anglo American. The following sections of the R545 road servitude cross property that is privately-owned and will have to be acquired by Anglo American: Distance 0.0km to 1.22km (Eenzaamheid 534 JR); Distance 12.57km to 13.20km (A. Harriet & Kie -Portion 26 Roodepoortje 326 JS); Distance 13.20km to 14.80km (J C vd Heever Portion 29 Vlakfontein 569 JR). 10. FENCING Fencing will be required to demarcate the full extent of the proposed road reserve (on both sides of the road). Final R545 design report compressed.doc Page 18 of 34

Stock-proof fencing (1.2 metre high), should comply with the details in the latest version of the Standard Drawing MTP 11/1 prepared by the Mpumulanga Department of Public Works, Roads and Transport. 11. ROAD TRAFFIC SIGNS AND ROAD MARKING Road Traffic Signs and Road Markings comply with the latest edition of the South African Road Traffic Signs Manual (SARTSM) and are indicated on the drawings. No passing road markings are based on passing sight distance requirements. 12. DRAINAGE Drainage catchment areas were identified and storm-water run-off calculations are based on a storm with a 20 year recurrence interval in accordance with Provincial Road requirements. Major storm-water drainage crossings are located at: Table 5: Major Storm-water Crossings of the R545 Distance Description 2.01km 2x1500x1500 box culverts 3.18km 2x2400x1500 box culverts 4.50km to 4.80km 3x2100x2100 box culverts 7.30km 3x3600x1500 box culverts 9.41km 3x2100x1500 box culverts 12.58km 4x3600x2400 box culverts All open drains should be concrete lined when the longitudinal slope exceeds 2%. 13. GEOTECHNICAL Soil samples were taken at 250 metre centres along the proposed alignment for the new road. Test pits were excavated using a TLB and profiled. The results of the investigation are documented in a separate report entitled Geotechnical Report for New Largo Colliery R545 Road Deviation numbered 000-0130-RPT0013. Final R545 design report compressed.doc Page 19 of 34

The predominant transported soil along the route was identified as silty sand colluvium, which is generally loose up to a depth of 1.5m to 2.2m, thereafter becoming medium dense. Silty sand layers containing medium and coarse gravels and the pebbles and cobbles consisting equally of rounded sandstones and angular very hard rock quartzite with occasional slate fragments are generally encountered. Fifty six test pits were excavated along the route, of which twenty seven bulk samples and four small samples were sent to a commercial soils laboratory for testing. Thirteen samples were classified as G7, four samples as G8, four samples as G9, four samples as G10 and two samples did not classify. No suitable sources of borrow material for road layer works were identified. Twenty eight samples had low heave potential and three samples had low to medium heave potential indicating that no heaving problems are expected. Generally the material is not of good quality and is not suitable for use in road pavement layers. The most suitable material located (of G7 quality) is between 6 500km and 8 500km. Two existing borrow areas on Anglo American property were investigated. Both borrow areas have sandy coarse gravels. The same material is still available in the area of test pits NLR31 to NLR33 and these materials classify as G7. The available G7 borrow materials are only suitable for use as road subgrade or general fill. At the time of the field investigation it was estimated that approximately 250 000m 3 of G7 material was still available. However, two 25 ton excavators were loading trucks in the southern borrow area, to transport the material to the Kusile site and the existing supply is rapidly being depleted. The Geotechnical Report recommends that materials used for all road layers should be imported, with the exception of the in-situ materials of G7 and better. However the possibility of using a blended material for fill (50/50 mix with slag) should be investigated. Final R545 design report compressed.doc Page 20 of 34

14. PAVEMENT DESIGN The road pavement design, as specified by the Mpumulanga Department of Public Works, Roads and Transport is: Double Seal 19.0/9.5 Surface treatment; 150mm Basecourse (G1) compacted to 88% of apparent density; 150mm Stabilized Upper Subbase (G5 or G6) compacted to 97% of mod. AASHTO density; 150mm Lower Subbase (G5 or G6) compacted to 97% of mod. AASHTO density; 150mm Selected Subgrade (G7) compacted to 93% of mod. AASHTO density: Fill compacted in 150mm layers to 93% of mod. AASHTO density: Roadbed - rip and re-compact with 6 passes of 10 ton vibrating roller. The proposed pavement design is detailed on Drawing No.0000-0130-CED-0420. 15. EARTHWORKS BALANCE The total volume of cut for the re-aligned section of R545 is 943 600 m 3. A volume of 381 900 m 3 is required for bulk earthworks (fill). Assuming a 10% bulking factor, there will be an excess of 467 340 m 3 of cut material to be spoiled. Calculations were based on 1:1.5 cut slopes (assuming no hard material). If hard material is proved, these cut slopes can be steepened and the quantity of excess cut material will reduce accordingly. 16. EXISTING AND PROPOSED SERVICES 16.1 Electrical Overhead power transmission lines cross the proposed route for the R545 at the following locations: Table 6: Overhead Power Transmission Line Crossings Distance Description Remarks 0.70km Existing 132kV Eskom Pylon to be re-located 1.32km Existing 132 kv Eskom Pylon to be re-located 1.42km Proposed 400kV Eskom Duhva-Minerva New line to suit road planning 8.97km Existing 400 kv Eskom Line to be de-commissioned 11.15km Existing 132kV Eskom Pylon to be re-located 13.40km to 14.00km Existing low voltage Line to be re-located Final R545 design report compressed.doc Page 21 of 34

Photo 6: Existing overhead power transmission lines from 13.00km (facing north) 16.2 Water No water pipe crossings of the R545 were identified. 16.3 Sewerage No sewerage pipe crossings of the R545 were identified. 16.4 Telephone Lines There are overhead telephone lines along the existing R545. These telephone lines will be cut off by the proposed mining operation and will need to be re-located along the new section of the R545. The existing telephone lines along the farm access (school) road will have to be relocated (13.40km to 14.00km). 16.5 Service Ducts Service ducts are provided across the new R545 at locations indicated on the drawings. Final R545 design report compressed.doc Page 22 of 34

17. CONSTRUCTABILITY The construction of the re-aligned section of the R545 will not impact on the operation of the existing road R545, except at the northern and southern tie-ins to the existing road, where temporary deviations will be required. These temporary road deviations will be constructed in accordance with standard road deviation layout drawings. The rehabilitation of the southern section of existing R545 between Wilge Township and the N12 interchange will have a significant impact on traffic on R545. To minimize this impact it is proposed that construction should be undertaken in half-widths. Adequate traffic accommodation measures and road signage will be required for road safety. 18. EXISTING R545 (BETWEEN WILGE TOWNSHIP AND N12 FREEWAY) Certain sections of the existing R545 between the southern tie-in and the N12 freeway are in poor condition and will require rehabilitation. A detailed survey of the condition of the existing R545 road surface was undertaken during December 2011 and the results are summarized in the following Table 7: Table 7: Condition of existing Road R545 (December 2011) Distance* Remarks (km) Zero Centre line of N12 freeway 0.3-0.6 Crocodile crack down centre line 0.9 Subsidence in west lane 1.1 T - junction Phola township - potholes 1.7 Surface damaged by burning tyres used as road blocks 2.1 Surface damaged by burning tyres used as road blocks 2.15 Service crossing subsidence 2.3-2.5 Potholes 2.9-3.1 3 x subsidences in eastern lane 3.1 Crack on centre-line 3.2 Potholes 3.5 Potholes 3.55 Intersection to Waste Water Treatment Works 3.9 Potholes 4.2 Patches with missing stone chips Final R545 design report compressed.doc Page 23 of 34

Distance* Remarks (km) 4.5 Truter Farm access - surface breaking up for 60 m (photos 7 & 8). 4.8 Subsidence in west lane 4.9 Gouge marks 5.1-5.2 Poor repairs - cracking. (photos 9 to 13). 5.4 Subsidence in west lane 5.6 Poor repairs - cracking. (photo 14). 5.9 Transverse cracks over 100 m length. (photo 15). 6 Potholes 6.0 onwards Transverse cracks - potholes starting. (photo 16). 6.6 Bad heaving. section (photos 17 to 20). 6.8 Badly damaged (photos 21 & 22) 6.9 Intersection. 7 Water course 7.2 Shops. Entire length Shoulders broken away at odd intervals. * Note distances are measured from 0km (at N12 Interchange) to 7.2km (at Wilge shops) The condition of the damaged sections of the existing road R545 can be seen in the following series of photographs (Photos 7 to 22) taken during December 2011. Photo 7: Existing R545 near Truter farm access (facing west) Final R545 design report compressed.doc Page 24 of 34

Photo 8: Edge damage on existing R545 near Truter farm access (facing west) Photo 9: Poor repair on existing R545 (facing east) Final R545 design report compressed.doc Page 25 of 34

Photo 10: Close up view of poor repair on existing R545 Photo 11: Poor repair on existing R545 Final R545 design report compressed.doc Page 26 of 34

Photo 12: Poor repair on existing R545 Photo 13: Close up view of poor repair on existing R545 Final R545 design report compressed.doc Page 27 of 34

Photo 14: Poor repair on existing R545 Photo 15: Transverse cracks & potholes on existing R545 Final R545 design report compressed.doc Page 28 of 34

Photo 16: Transverse cracks & potholes starting on existing R545 Photo 17: Potholes in wheel path on existing R545 Final R545 design report compressed.doc Page 29 of 34

Photo 18: Crocodile cracking on existing R545 Photo 19: Cracks & Potholes on existing R545 Final R545 design report compressed.doc Page 30 of 34

Photo 20: Cracks & Potholes on existing R545 Photo 21: Existing R545 south of Wilge Township (facing west) Final R545 design report compressed.doc Page 31 of 34

Photo 22: Existing R545 with Wilge Township in background (facing west) 19. CONCLUSIONS The selection of a suitable route for the re-aligned section of the R545 Provincial Road is subject to major constraints due to both mining operations and also environmental issues. The selected route alignment complies with the relevant provincial standards while minimizing the impact on the major environmentally sensitive areas. The proposed new intersection at the northern end of the re-alignment of the R545 will need to accommodate a high proportion of vehicular turning movements, which include a large number of heavy vehicles, due to the development of the Kusile Power Station and the New Largo Coal Mine. A properly designed Modern Roundabout type traffic circle is well suited to accommodate vehicular turns safely and in particular right turns across opposing traffic with minimal delay. It is proposed that this type of intersection should be constructed at this junction between the re-aligned R545 and the Kusile Road. Final R545 design report compressed.doc Page 32 of 34

Sections of the pavement of the southern part of existing Road R545 are currently in poor condition and need to be rehabilitated. The traffic report indicates that there will be a need to upgrade the existing ramp terminals at the N12 / R545 interchange. Re-marking of existing traffic lanes is required and there is a possible need to install traffic signals at these intersections in the future. The potential need for traffic signals should be confirmed by the results of detailed turning movement traffic surveys. 20. RECOMMENDATIONS It is recommended that: The re-aligned section of the R545 is approved for further more detailed investigation during the next phase of the project. Consideration should be given to the need for rehabilitating the sections of distressed pavement on the existing R545 (south) Additional detailed turning movement counts should be undertaken to determine whether traffic signals are required at specific intersections A modern roundabout type traffic circle be constructed at the northern end of the R545 realignment at the Kusile Road intersection. Final R545 design report compressed.doc Page 33 of 34

APPENDIX A LAYOUT DRAWING Final R545 design report compressed.doc Page 34 of 34